On Tuesday morning, the price of bitcoin rose as investors took advantage of the coin's drop.
As a result, the BTC/USD price reached a high of $20,318 on July 1st, the highest level since July 1st of this year. However, it is still significantly lower than its all-time high of nearly $70,000.
Correlation between Bitcoin and US stocks
The Bitcoin price is rising as American stocks make a slow recovery. The Dow Jones, Nasdaq 100, and S&P 500 indexes all rose by more than 1% on Friday. The same bullish trend is evident in the futures market, where the three have risen by 0.50 percent as investors prepare for the new quarter.
In recent months, there has been a strong correlation between Bitcoin and American indices. Most of the time, Bitcoin rises when these indices rise, and vice versa. This helps to explain why many Bitcoin investors are holding their positions. Their argument is that Bitcoin will recover when stocks reach a bottom.
There are still concerns about Bitcoin's demand. For one thing, as exchanges struggle, the number of Bitcoin buyers has decreased. Furthermore, some of the top companies currently under pressure include Celsius, Voyager Digital, KuCoin, and Vauld. As a result, investors who have lost a fortune in the industry are concerned about the future demand for Bitcoin.
On the plus side, some of the biggest players in the Bitcoin industry have not closed their positions. Tesla, Square, and MicroStrategy are among the holders.
Bitcoin price forecast
The four-hour chart shows that the BTC price has been slowly recovering in recent days. The coin has risen above the critical support level of $18,800, which was the lowest last week. Furthermore, Bitcoin has moved above the 25-day and 50-day moving averages, while the Relative Strength Index (RSI) has approached overbought territory.
As a result, the Bitcoin price is expected to rise further as bulls aim for the key resistance level at $21,800, which was the highest point last week. A break below the key support level of $19,000 will render the bullish outlook invalid.
S&R levels for Bitcoin/USD
My viewpoint differs from that of InvestingCube's S&R tool. According to the widely used indicator, the Bitcoin price remains bearish. The first target for this trend is $18,888, followed by $17,890. On the other hand, the stop-loss for this trade is between $20,888 and $22,117.
